A, Swiss Foundation Role in the Context of an Initial Coin Offering is to act similarly to a custodian bank. The foundation manages and safeguards the assets raised during the ICO on behalf of the project and its stakeholders. Do not hesitate to contact us at connect@swissfintechpro.com
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Here is a closer look at how this role parallels that of a custodian bank:
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Like a custodian bank, a Swiss Foundation holds the ICO proceeds, which can include cryptocurrencies, fiat currencies, and potentially other types of assets depending on the nature of the ICO.
It ensures that these assets are safeguarded against unauthorized access or misuse, using both legal and technical means.
The foundation is governed by a board of directors, and its actions are bound by the stipulations set forth in its charter and Swiss law. This governance structure helps ensure that all financial and operational activities adhere to predefined rules and regulations, similar to the regulatory compliance enforced in banking operations.
The foundation is responsible for ensuring that the ICO complies with relevant laws and regulations, including anti-money laundering (AML) and counter-terrorism financing (CTF) standards. This role is crucial for maintaining the legitimacy and legal standing of the ICO, akin to the compliance responsibilities held by custodian banks.
Post-ICO, the foundation manages and allocates funds according to the project’s goals and needs, such as development costs, marketing, and further project-related investments. This is like how a custodian bank manages disbursements on behalf of its clients based on specific instructions and agreements.
Foundations are required to maintain an elevated level of transparency in their financial dealings and operations. This involves regular reporting and audits, which help build trust among investors and regulatory bodies, paralleling the transparency obligations of custodian banks.
However, it is important to note some differences:
In summary, while not a bank in the traditional sense, a Swiss Foundation does perform several bank-like custodial functions specifically in the context of managing ICO assets and ensuring regulatory compliance. This setup is particularly chosen for its ability to align with the decentralized and non-profit nature of many blockchain projects, ensuring that all operations are conducted transparently and in accordance with Swiss law. Do not hesitate to contact us at connect@swissfintechpro.com
